28 Apr 2016
RBNZ and BoJ say not right now – Westpac
Sean Callow, Research Analyst at Westpac, suggests that the FOMC statement caused only fleeting volatility on USD/JPY, soon forgotten after the Bank of Japan’s unexpected steady hand today.
Key Quotes
“Despite lowering CPI and GDP forecasts in its quarterly statement and despite assorted local press stories about fresh policy steps, the BoJ made no major changes. USD/JPY collapsed 2% and seems likely to remain heavy near term. This meant AUD/ JPY failed once again above 86 and perhaps will fi nd bargain hunters near 82.
AUD/NZD has also been hammered by Australia’s CPI data and unexpected central bank caution, with the RBNZ holding at 2.25% and not clearly flagging a June move. This has knocked AUD/NZD below 1.10 for the first time since early March. Indeed AUD is the weakest G10 currency over the past week. Tuesday will tell if next week is a repeat.”
Key Quotes
“Despite lowering CPI and GDP forecasts in its quarterly statement and despite assorted local press stories about fresh policy steps, the BoJ made no major changes. USD/JPY collapsed 2% and seems likely to remain heavy near term. This meant AUD/ JPY failed once again above 86 and perhaps will fi nd bargain hunters near 82.
AUD/NZD has also been hammered by Australia’s CPI data and unexpected central bank caution, with the RBNZ holding at 2.25% and not clearly flagging a June move. This has knocked AUD/NZD below 1.10 for the first time since early March. Indeed AUD is the weakest G10 currency over the past week. Tuesday will tell if next week is a repeat.”